Egypt Independent

BP to sell Egyptian oil fields to Apache Corp

UK-based oil giant British Petroleum (BP) has agreed to sell oil and gas fields in Egypt, the US, and Canada to Apache Corp for US$7 billion in an attempt to raise cash following its record oil spill in the Gulf of Mexico.

The Egyptian properties set to be sold are the Western Desert business concessions and an East Bard el-Din exploration concession, totalling US$650 million.

A senior official at Egypt’s Ministry of Petroleum told Al-Masry Al-Youm that BP will have to acquire clearance from the General Petroleum Corporation (EGPC) before proceeding with the deal, as stipulated by the corporation’s agreements with its partners. The official added that the corporation will not object to the deal since Apache has been operating in Egypt for decades.

Assets in the Permian Basin properties in Texas and New Mexico will sell for US$3.1 billion and assets in western Canada for US$3.25 billion, according to Bloomberg News. Apache will pay a deposit of US$5 billion in cash on 30 July.

Apache Corp’s investments in Egypt have totalled US$8 billion over the last 15 years, compared to BP’s investment of US$17 billion (40% of Egypt’s local oil production).